Camera Raw 7.2: error: "This file cannot be created"

I have CS6 edition. Hi, I have a problem when saving files from Camera Raw. When I choose NEW FOLDER and choose the folder, nothing pulls up. When I try to save, the error comes up as THIS FILE CANNOT BE CREATED.

I recently got CS6 and had problems on and off with this and now the error persists. I checked for all updates and everything seems up to date.